Lessons from Korean development experience

Khan, Haider A. (2011): Lessons from Korean development experience.

Abstract

The main purpose of this paper is to explore the possibilities of learning from Korea some pertinent lessons for industrialization and development in the 21st century. The 21st century presents an even greater challenge for industrialization in the developing world than the post-WWII period. The changed global economic and ecological environment will shape the emergence of new technological and industrial paradigms and trajectories in significant ways. However, the experience of Korea still presents many relevant lessons. The paper uses an extension of Sen's idea of capabilities within a framework of complex dynamic systems. In this view, development is really an extension over time and space of freedom, particularly the positive freedom to lead a certain type of life an individual has reasons to value through the creation of an interlinked network of institutions. I discuss a number of strategic features of Korean development experience ranging from strategic openness to learning, innovation and ultimately, enhancing the standard of living for all. From the Korean case, it is apparent that the desirable institutions provide a rough and ready type of security of property rights, enforceability of contracts and lead to a gradual and strategically conceived integration with the world economy. In addition, they also help maintain macroeconomic stability without a necessarily rigid conservative fiscal stance. Over time and given sufficient financial development, the state and private sector institutions should be able to manage risk-taking by financial intermediaries. In order to promote equitable growth there will also need to be institutions that can supply social insurance and safety nets, and create a democratic space for voice and accountability. But there is no one-size-that-fits-all for any of these functions. I also argue that in addition to the positive lessons from the Korean experience and the willingness of Korea to extend aid and expertise to developing economies of Asia and Africa in particular, Korea can also play a much broader and significant role in the present turbulent global political economy through creative regional and global cooperation.

• Item Type: MPRA Paper
• Language: English
• Keywords: Korean development, heterodox development, non-linear model of development
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches

References

Amsden, Alice (1989), Asia's Next Giant: South Korea and the Late Industrialization, New York: Oxford University Press.

APEC(2005), International Workshop on Emerging Technologies: The Challenges of Convergence", Bangkok, Dec.14-16,2005 http://www.apecforesight.org/emerging_tech/index.htm (last accessed June23,2008)

Chang, H.-J. ed.(2007) Institutional Change and Economic Development, UNU press, Tokyo.

Cline, William R. (1982). "Can the East Asian Export Model of Development Be Generalized?",World Development, Vol.10, no.2 pp.81-90.

Goel R.K. and. Hsieh E.T., 2006, On coordinating environmental policy and technology policy, Journal of Policy Modelling, Volume 28, Issue 8, November 2006.

Jomo K. S. ed. (2007). Malaysian Industrial Policy. Singapore University Press, Singapore, and University of Hawaii Press, Honolulu.

Jomo K. S., Chang Y. T., Khoo K. J. with others (2004). Deforesting Malaysia: The Political Economy and Social Ecology of Agricultural Expansion and Commercial Logging. Zed Books, London.

Jomo K. S. ed. (1995). Privatizing Malaysia: Rents, Rhetoric, Realities. Westview Press, Boulder.

Jomo K. S. with Shyamala Nagaraj eds. (2001). Globalization Versus Development: Heterodox Perspectives. Palgrave, Houndmills.

Jomo, K.S. and Wee (2008) "Lessons From Post-Colonial Malaysian Economic Development", paper prepared for WIDER conference on Country Role Models for Development Success, June13-14, Helsinki

Keynes, J. M.(1971-79), The Collected Writings of John Maynard Keynes, 29 vols., ed., D. E. Moggridge for the Royal Economic Society, London: Macmillan.

Khan HA(2011a), “Constructing Global Governance of Global Finance: Towards a Hybrid Global Financial Architecture”, paper presented at the ISA conference, Montreal, Canada, March.

Khan HA(2011b),”Analyzing the Implications of the Financial Crisis for the Developing Economies”, UNDP, NYC.

Khan HA(2011c), Inclusive Development and Managed Creative Destruction in National Innovation Systems: Towards A Theory with Preliminary Applications to South Korea, paper for Atlanta Conference on Innovation

Khan HA(2011d), Beyond Simple Neo-Malthusianism: Some Working Notes on Youthful populations, Environment, Youth Employment Challenges and Poverty in LDCs, paper prepared for UNFPA.

Khan H.A. (2009). Korea’s Development Strategy and Energy Security, WIDER paper, Helsinki

Khan HA (2008a). "Building an Innovative Economy through Managed Creative Destruction: A Theory with Applications to South Korea". Accessed April 2008 at: http://econpapers.repec.org/paper/pramprapa/7713.htm

Khan ,H.A.(2008b)"Making Globalization Work: Towards Global Economic Justice", Cosmopolis, May 2008 http://ideas.repec.org/p/pra/mprapa/7864.html

Khan,H. A.(2008c) "Korea's Development Strategy and Energy Security", WIDER research Paper http://www.wider.unu.edu/publications/working-papers/research-papers/2008/en_GB/research_papers_2008/

Khan, H.A. (2009), MDG Goals: For Whom Does the Bell Toll?, Working Paper, JKSIS, Denver.

Khan, H. A. 2005," Case Studies in Globalization, Convergence, and Superconvergence of Emerging Technologies presentation at the International Workshop on Emerging Technologies: The Global Challenges of Convergence, Bangkok,14-15 Dec.2005. http://www.apecforesight.org/emerging_tech/docs/HaiderPresentation_Dec05.ppt

Khan, H. A (2002) “Innovation and Growth in a Schumpeterian Model”, Oxford Development Studies, Vol. 30, no. 3, 2002: 289-306.

Khan HA (2004a). Innovation and Growth in East Asia: The Future of Miracles. Houndsmills and New York: Macmillan/Palgrave.

Khan HA (2004b). Global Markets and Financial Crisis in Asia: Towards a Theory for the Twenty First Century. Houndsmills and New York:Macmillan/Palgrave.

Khan HA (2003a). Technology and Modernity: Creating Social Capabilities in a POLIS. In Misa T ed. Technology and Modernity, Cambridge: The MIT Press, Chapter12.

-------(2003b) “What can the African countries learn from the macroeconomics of foreign aid in Southeast Asia?”, Aryeetey, E., Court, J., Nissanke, M. and Weder, B., Asia and Africa in the Global Economy, Tokyo, UNU Press.

Khan HA (2002). "Innovation and Growth in a Schumpeterian Model". Oxford Development Studies 30(3): 289-306.

Khan HA (1998). Technology, Development and Democracy: Limits to National Innovation Systems in the Age of Postmodernism. Cheltenham, United Kingdom: Edward Elgar.

Khan HA (1997). Technology, Energy and Development: The South Korean Transition. Cheltenham, United Kingdom: Edward Elgar.

Khan HA(1983)"Technology, Energy, Distribution and Balance of Payments:A Macroeconomic Framework", Unpublished dissertation, Cornell University, Ithaca, New York.

Khan, H. A., A. Tamazian, K. Vadlamanti, forthcoming, Growth and Energy Consumption in the BRICs.

Khan, H. A., and Thorbecke, E. (1988), Macroeconomic Effects and Diffusion of Technologies within a Social Accounting Matrix Framework, Aldershot, U.K.: Gower Publishing.

----- (1989), “Macroeconomic Effects of Technology Choice: Multiplier and Structural Path Analysis,” Journal of Policy Modeling 11, no. 1: 131-59.

Lee, Keun(2008) "Can Korea be a Role Model for Development?A “Capability-based View” on Korea", paper prepared for WIDER conference on Country Role Models for Development Success, June13-14, Helsinki

Lee, Keun, 2006, “The Washington Consensus and East Asian Sequencing: Understanding Reform in East and South Asia,” J. Fanelli and G. McMahon, eds. Understanding Market Reforms Vol. 2: Palgrave, 2006 .

Lee, Keun A., 2006, “Understanding Reform in 6 Asian Countries: Washington Consensus vs. East Asian Sequencing,” J. Fanelli and G. McMahon, eds. Understanding Market Reforms Vol. 2: Palgrave..

Lee, K., Hanh D., and Yifu Lin J., 2002, : "Is China following the East Asian Model? A Comparative Institutional Analysis Perspective" Korea Review 2: no.1.

Lee K., 2006 b , China's Economic Catch-up: Washington Consensus or the Bejing Consensus, Selected Papers from the 2nd World Forum on Korea Studies (Abstracts), Panel 2, Exploration into the Theory and Practice of the Mode of Korea’s Development, in http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN024930.pdf

Mayer, Jörg(2002). "The Fallacy of Composition:A Review of the Literature", The World Economy, Vol.25,pp.875-94.

Razmi, Arslan and Robert Blecker (2006)."Developing Country Exports of Manufactures:moving up the export ladder to escape the fallacy of composition?", Journal of Development Studies, Vol.44, No.1, January:21-48.

Sen A., (1999),. Development As Freedom. New York: Knopf. Thorbecke, E. 1992. Adjustment and equity in Indonesia (OECD Development Centre, Paris).

------- and Hong-Sang Jung. 1996. Multiplier decomposition method to analyze poverty alleviation, Journal of Development Economics, March, 48 (2) 279-301.

Thorbecke, E., and C. Morrisson. 1989. “Institutions, Policies and Agricultural Performance.” World development(September).

Warr, Peter(2008) "Thailand's Development Strategy and Growth Performance", paper prepared for WIDER conference on Country Role Models for Development Success, June13-14, Helsinki

Warr, Peter (1993) ‘The Thai Economy’ in Peter Warr (ed.) The Thai Economy in Transition, Cambridge University Press, Cambridge, 1-80.

Warr, Peter (1999). 'What Happened to Thailand?', The World Economy, 22 (July), 631-650.

Warr, Peter (2005) ‘Boom, Bust and Beyond’ in Peter Warr (ed.) Thailand Beyond the Crisis, Routledge, London, 3-65.

Weiss, John and H. A. Khan eds.(2006) Poverty Strategies in Asia: A Growth Plus Approach, Cheltenham: Edward Elgar and ADBI.